Some 800 gas stations across South Korea raised gasoline and diesel prices on the first day the second-phase fuel price cap took effect, even though existing inventory meant there was no immediate cost pressure to do so. Nationwide petroleum product prices have shifted back into an upward trend.
10-Won Surge on Day One — 2,000-Won Mark Within Reach
According to fuel price tracker Opinet on the morning of the 27th, the national average price of regular gasoline stood at 1,830.19 won per liter as of 9 a.m., up 10.84 won from the previous day. Diesel also rose 10.45 won to 1,826.25 won.
Opinet collects real-time prices from payment terminals at gas stations nationwide and updates six times daily — at 1 a.m., 2 a.m., 9 a.m., noon, 4 p.m. and 7 p.m. Given the morning's upward trend, the increase is expected to widen as the day progresses.
Starting on the 27th, the second-phase price caps were set at 1,934 won for gasoline, 1,923 won for diesel and 1,530 won for kerosene per liter — each raised by 210 won from the first-phase caps two weeks earlier. Market prices have moved in tandem.
With the ceiling on refiner supply prices rising from the 1,700-won range to the 1,900-won range, retail gas stations face roughly 200 won in additional cost factors. Analysts project gasoline and diesel retail prices will soon settle in the low 2,000-won range.
The national average gasoline price, which had surged to the 1,900-won level after the outbreak of the Middle East conflict, dropped quickly to the low 1,800s after the first-phase price cap took effect on the 13th.
The government announced an expanded fuel tax cut to ease the burden of rising oil prices amid the Middle East crisis. Gasoline prices held steady in the 1,819–1,820-won range for the week from the 20th through the 26th. But from the morning of the 27th, when the second-phase cap kicked in, both gasoline and diesel resumed their climb.
One Station Hiked 270 Won — Critics Call It 'Excessive Profiteering'
According to the Energy and Petroleum Market Surveillance Unit, as of 5 a.m. on the 27th, 843 gas stations had raised gasoline prices and 821 had raised diesel prices compared with the previous day.
The largest gasoline hike was at Myeongji Nonghyup Gas Station (NH-Oil) in Gangseo-gu, Busan, which raised its price by 270 won to sell at 2,034 won per liter. For diesel, Areum Gas Station (GS Caltex) in Ganghwa-gun, Incheon, posted the steepest increase of 282 won, reaching 2,069 won.
Gas stations typically hold five to 14 days' worth of inventory, meaning their actual costs do not jump the moment the cap is raised. Even accounting for consumers rushing in ahead of expected price hikes and depleting stocks faster, industry analysts say the real cost increase is not reflected in retail prices until two to three days after implementation.
Nevertheless, raising prices on the very first day has drawn criticism as excessive profiteering. The government also views such behavior as unreasonable.
The government has stated it will impose sanctions without exception on practices that disrupt distribution order, including collusion and hoarding.
The government, consumer groups and public agencies are jointly monitoring prices at roughly 10,000 gas stations nationwide on a daily basis, while also tracking where fuel supplies are flowing. Stations that raise prices despite still holding inventory purchased at lower costs under the first-phase cap, or that hike prices by hundreds of won in a single day, have been classified as priority surveillance targets.
